New Delhi: Minister of State for Tourism KJ Alphons on Tuesday admitted in the Rajya Sabha that the Goods and Services Tax (GST) levied on hotels and other tourism services directly impacts India’s tourism competitiveness vis-a-vis other countries.
In a reply to Prabhakar Reddy Vemireddy, he said the GST rate slabs were revised on his ministry approaching the finance minister. The minister said that basis for determination of the applicable rate changed from declared tariff to actual tariff. Threshold limit of applicability of 28% GST rate was increased from Rs 5,000 to Rs 7500 per room per day, he added.
GST on restaurants and eateries brought down to 5% irrespective of whether they are air-conditioned or not; However, the tax will be 18% on a restaurant in hotels, inns, guest houses, club or any commercial place with a daily tariff of Rs 7500 per day per unit or above, he said.
